While we’re on a mortgage penalty theme, here are links to the newest prepayment charge calculators from the top banks:
- Bank of Montreal
- Laurentian Bank
- National Bank of Canada
- Manulife Bank
- Royal Bank
- TD Canada Trust
These calculators were inspired by this worthy initiative from the Department of Finance.
If you play around with them, you’ll notice something. The penalties vary wildly.
In fact, after making some standard assumptions*, we calculated hypothetical penalties with each of the above calculators. There wasn’t even one instance where two lenders had the same penalty.
The results ranged from 3-month interest charges under $1,000 to IRD penalties of more than $4,000. The large banks were generally the most expensive.